v3.25.4
Net Income Per Share
12 Months Ended
Jan. 31, 2026
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by giving effect to all potentially dilutive shares of common stock, including outstanding share-based awards consisting primarily of unvested RSUs and ESPP obligations. We determine the dilutive effect of outstanding share-based awards using the treasury stock method.
The holders of our Class A and Class B common stock have identical liquidation and dividend rights but different voting rights. Accordingly, we present net income per share for Class A and Class B common stock together as the two-class method does not result in a difference.
The following table presents the calculation of basic and diluted net income per share (in millions, except number of shares, which are reflected in thousands, and per share data):
Year Ended January 31,
2026
2025 (1)
2024 (1)
Net income per share, basic:
Numerator:
Net income$693 $526 $1,381 
Denominator:
Weighted-average shares outstanding, basic265,097 265,257 261,344 
Net income per share, basic$2.61 $1.98 $5.28 
Net income per share, diluted:
Numerator:
Net income $693 $526 $1,381 
Denominator:
Weighted-average shares outstanding, basic265,097 265,257 261,344 
Dilutive effect of share-based awards3,020 3,948 3,941 
Weighted-average shares outstanding, diluted268,117 269,205 265,285 
Net income per share, diluted$2.59 $1.95 $5.21 
(1)The prior period EPS for Class A and Class B common stock has been presented together to conform with current period presentation, which had no impact on our previously reported basic or diluted EPS.
The computation of diluted net income per share does not include the effect of the following potentially outstanding weighted-average shares of common stock because their effect would have been anti-dilutive (in thousands):
 Year Ended January 31,
 202620252024
Total weighted-average shares related to outstanding share-based awards
2,193 1,682 2,206